SB1701 103RD GENERAL ASSEMBLY

LRB103 29043 AWJ 55429 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB1701

Introduced 2/8/2023, by Sen. Ram Villivalam

SYNOPSIS AS INTRODUCED:

See Index

Amends the State Finance Act. Adds uses for which the Partners for Conservation Fund and the Partners for Conservation Projects Fund may be used, and adds amounts that will be transferred from the General Revenue Fund to the Partners for Conservation Fund until 2033 (rather than ending in 2023). Provides that the Partners for Conservation Fund is eligible to receive grants, gifts, and awards from any public or private entity for the purpose of expanding financial and technical assistance in order to advance nutrient loss reduction efforts within priority watersheds. Amends the Soil and Water Conservation Districts Act. Changes the definition of "soil health", and adds other definitions. Creates the Illinois Healthy Soils and Watersheds Initiative to improve the health of soils and the function of watersheds through efforts that support the implementation of the State's Nutrient Loss Reduction Strategy, reduce nutrient loss, improve soil and water quality, protect drinking water, increase the resilience of ecosystems to extreme weather events, protect and improve agricultural productivity, and support aquatic and wildlife habitat. Provides that the Department of Agriculture shall adopt and revise guidelines to assist soil and water conservation districts in determining local goals and needs for implementing soil health and watershed conservation projects consistent with the Nutrient Loss Reduction Strategy and, after adoption, water conservation districts shall develop its own goals and needs assessment. Includes provisions about compliance and standards cost sharing, Nutrient Loss Reduction Strategy alignment for State-owned, State-managed, and State-leased agricultural lands, and Nutrient Loss Reduction Strategy reports. Effective immediately.

A BILL FOR

AN ACT concerning local government.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The State Finance Act is amended by changing Section 6z-32 as follows:

(30 ILCS 105/6z-32)

Sec. 6z-32. Partners for Planning and Conservation.

(a) The Partners for Conservation Fund (formerly known as the Conservation 2000 Fund) and the Partners for Conservation Projects Fund (formerly known as the Conservation 2000 Projects Fund) are created as special funds in the State Treasury. These funds shall be used to establish a comprehensive program to protect Illinois' natural resources through cooperative partnerships between State government and public and private landowners. Moneys in these Funds may be used, subject to appropriation, by the Department of Natural Resources, Environmental Protection Agency, and the Department of Agriculture for purposes relating to natural resource protection, planning, recreation, tourism, climate resilience, and compatible agricultural and economic development activities. Without limiting these general purposes, moneys in these Funds may be used, subject to appropriation, for the following specific purposes:

(1) To foster sustainable agriculture practices and control soil erosion, sedimentation, and nutrient loss from farmland, including grants to Soil and Water Conservation Districts for conservation practice cost-share grants and for personnel, educational, and administrative expenses.

(2) To establish and protect a system of ecosystems in public and private ownership through conservation easements, incentives to public and private landowners, natural resource restoration and preservation, water quality protection and improvement, land use and watershed planning, technical assistance and grants, and land acquisition provided these mechanisms are all voluntary on the part of the landowner and do not involve the use of eminent domain.

(3) To develop a systematic and long-term program to effectively measure and monitor natural resources and ecological conditions through investments in technology and involvement of scientific experts.

(4) To initiate strategies to enhance, use, and maintain Illinois' inland lakes through education, technical assistance, research, and financial incentives.

(5) To partner with private landowners and with units of State, federal, and local government and with not-for-profit organizations in order to integrate State and federal programs with Illinois' natural resource protection and restoration efforts and to meet requirements to obtain federal and other funds for conservation or protection of natural resources.

(6) To implement the State's Nutrient Loss Reduction Strategy, including, but not limited to, funding the resources needed to support the Strategy's Policy Working Group, cover water quality monitoring in support of Strategy implementation, prepare a biennial report on the progress made on the Strategy every 2 years, and provide cost share funding for nutrient capture projects.

(7) To provide capacity grants to support soil and water conservation districts, including, but not limited to, developing soil health plans, conducting soil health assessments, peer-to-peer training, convening producer-led dialogues, professional development and travel stipends for meetings and educational events.

(8) To develop guidelines and local goals and needs assessments for advancing the goals of the Nutrient Loss Reduction Strategy and protecting soil and watershed health.

(9) To implement a crop insurance premium discount program for practices that improve soil health.

(10) To incorporate climate science into the Nutrient Loss Reduction Strategy science assessment, planning, and scenario development to assess where climate resilience planning may support conservation goals and protect conservation gains in order to safeguard soil health, water quality, and the long-term resilience of the agricultural sector while reducing susceptibility to flooding and other extreme weather events. This effort includes collaboration with the Illinois State Climatologist and may also include the Federal Emergency Management Agency, the USDA climate initiatives, the Department of the Interior, the Department of Defense, the Army Corps of Engineers, and other agencies.

(11) For capacity grants to support soil and water conservation districts, including, but not limited to, developing soil health plans and conducting soil health assessments, peer-to-peer training, convening producer-led dialogues, professional development, training, travel stipends for meetings and educational, events, and developing pilot projects within priority watersheds.

(12) For the Department of Agriculture, Illinois Environmental Protection Agency, and University of Illinois Extension to engage the Serve Illinois Commission and the federal Corporation for National and Community Service to develop a Healthy Soils and Watersheds AmeriCorps program in support of soil and water conservation districts and local governments. This includes the recruitment, interview, and selection of members in a nonpartisan, nonpolitical and nondiscriminatory manner consistent with applicable federal and State statutes. Members shall support efforts to enhance local planning and capacity to achieve the Nutrient Loss Reduction Strategy goals and improve the delivery of State and federal conservation programs.

(b) The State Comptroller and State Treasurer shall automatically transfer on the last day of each month, beginning on September 30, 1995 and ending on June 30, 2033 2023, from the General Revenue Fund to the Partners for Conservation Fund, an amount equal to 1/10 of the amount set forth below in fiscal year 1996 and an amount equal to 1/12 of the amount set forth below in each of the other specified fiscal years:

(c) The State Comptroller and State Treasurer shall automatically transfer on the last day of each month beginning on July 31, 2021 and ending June 30, 2022, from the Environmental Protection Permit and Inspection Fund to the Partners for Conservation Fund, an amount equal to 1/12 of $4,135,000.

(c-1) The State Comptroller and State Treasurer shall automatically transfer on the last day of each month beginning on July 31, 2022 and ending June 30, 2023, from the Environmental Protection Permit and Inspection Fund to the Partners for Conservation Fund, an amount equal to 1/12 of $5,900,000.

(d) There shall be deposited into the Partners for Conservation Projects Fund such bond proceeds and other moneys as may, from time to time, be provided by law.

(e) The Partners for Conservation Fund is eligible to receive grants, gifts, and awards from any public or private entity for the purpose of expanding financial and technical assistance in order to advance nutrient loss reduction efforts within priority watersheds.

(Source: P.A. 101-10, eff. 6-5-19; 102-16, eff. 6-17-21; 102-699, eff. 4-19-22.)

Section 10. The Soil and Water Conservation Districts Act is amended by adding Sections 3.24, 3.25, 3.26, 3.27, 3.28, 22.03a, 22.03b, 22.03c, 22.03d, 22.03e, 22.03f, and 22.03g as follows:

(70 ILCS 405/3.24 new)

Sec. 3.24. "Healthy soils practices" means systems of agricultural, forestry, and land management practices that:

(1) improve the health of soils, including, but not limited to, consideration of depth of topsoil horizons, water infiltration rate, water-holding capacity, organic matter content, biologically accessible nutrient content, bulk density, biological activity, and biological and microbiological diversity;

(2) follow the principles of: minimizing soil disturbance and external inputs; keeping soil covered; maximizing biodiversity; diversifying crop rotations; maximizing presence of living roots; integrating animals and insects into land management, including grazing animals, birds, beneficial insects, or keystone species, such as earthworms; and incorporating the context of local conditions in decision-making, including, for example, soil type, topography, and time of year; and

(3) include practices such as conservation tillage or no-till, cover-cropping, perennialization of highly erodible land, precision nitrogen and phosphorus application, managed grazing, integrated crop-livestock systems, silvopasture, agroforestry, perennial crops, integrated pest management, nutrient best management practices, invasive species removal and the planting of native species and those practices recommended by the United States Department of Agriculture's "Natural Resources Conservation Service - Field Office Technical Guide".

(70 ILCS 405/3.25 new)

Sec. 3.25. "Soil health assessment" means a suite of soil-health-indicator measures, including, but not limited to, soil organic matter, soil structure, infiltration and bulk density, water-holding capacity, microbial biomass, and soil respiration.

(70 ILCS 405/3.26 new)

Sec. 3.26. "Initiative" means the Illinois Healthy Soils and Watersheds Initiative.

(70 ILCS 405/3.27 new)

Sec. 3.27. "Healthy watershed" means the continued capacity of a surface and groundwater ecosystem to function as a vital living ecosystem that is resilient to drought and storm events and that sustains humans, plants, and animals. "Healthy watershed" includes watersheds that provide public and private benefits, including, but not limited to, improved water cycle, water quality, drinking water security, recreation and tourism, stormwater management, flood mitigation, habitat resilience, and crop risk.

(70 ILCS 405/3.28 new)

Sec. 3.28. "Healthy soil" means the continuing capacity of a soil to function as a vital, living biological system that sustains plants, animals, and humans, increases soil organic matter, improves soil structure and water-and nutrient-holding capacity and nutrient cycling, enhances water infiltration and filtration capability, promotes water quality, and results in net long-term ecological benefits. "Healthy soil" includes soil that hosts a diversity of beneficial organisms, grow vigorous crops, enhance agricultural resilience, including the ability of crops and livestock to tolerate and recover from drought, temperature extremes, extreme precipitation events, pests, diseases, and other stresses, break down harmful chemicals, and help convert organic residues into stable soil organic matter and retaining nutrients, especially nitrogen and phosphorus.

(70 ILCS 405/22.03a new)

Sec. 22.03a. Illinois Healthy Soils and Watersheds Initiative.

(a) The Illinois Healthy Soils and Watersheds Initiative is created. It is the purpose of the Initiative to improve the health of soils and the function of watersheds through efforts that support the implementation of the Nutrient Loss Reduction Strategy, reduce nutrient loss, improve soil and water quality, protect drinking water, increase the resilience of ecosystems to extreme weather events, protect and improve agricultural productivity, and support aquatic and wildlife habitat.

The Initiative shall be administered by the Director of Agriculture with consultation from soil and water conservation districts, the Illinois Environmental Protection Agency, the Department of Natural Resources, and the University of Illinois Extension Program. The Department shall create guidelines and guidance to assist soil and water conservation districts in developing goals and needs assessments in order to identify desired capacity and funding levels and establish regular, measurable, cost-effective, and technically achievable goals to advance voluntary and incentive-based strategies that improve healthy soils and watersheds and reduce nutrient loss. These assessments shall be used to identify opportunities to access and leverage financial and technical assistance from local, State, and federal sources to guide resources to their best potential use.

The Initiative shall complement and improve coordination of existing resources and processes, such as those underway through the Nutrient Loss Reduction Strategy, the erosion and sediment control program, stormwater financial assistance program, those described by Section 6z-32 of the State Finance Act, and shall not replace existing, local, State, private, or federal funding or technical assistance programs. The Department shall report on progress of the Initiative as a component of biennial reporting for the Illinois Nutrient Loss Reduction Strategy described in this Act.

The Initiative shall promote voluntary and incentive-based conservation efforts. No part of this Section shall be used to impose mandates or require practice adoption.

(70 ILCS 405/22.03b new)

Sec. 22.03b. Guidelines for goals and needs assessment. The Department shall adopt and revise guidelines to assist soil and water conservation districts in determining local goals and needs for implementing soil health and watershed conservation projects consistent with the Nutrient Loss Reduction Strategy.

In developing its guidelines to assist soil and water conservation districts in determining local goals and needs for project implementation to accomplish the goals of the Nutrient Loss Reduction Strategy, the Department shall consider:

(1) the relevant physical and geological features of individual watersheds and drainage basins of the State, including, but not limited to, data relating to land use and land use activities, soil type, hydrology, geology, waterbody characteristics, stream buffers, and built infrastructure;

(2) the presence of a nonpoint source priority watershed as identified in the Nutrient Loss Reduction Strategy science assessment;

(3) watershed-scale information about current and future climate projections and expected impacts from climate change regarding streamflow, soil health, and other factors that would exasperate nutrient loss as well as increased additional risks related to flooding, water quality impairments, and other impacts to the ecosystem function and biological diversity;

(4) previously established goals and deadlines within local watershed-based plans, total maximum daily load allocation plans, water quality implementation plans, stormwater plans, soil health plans, or nutrient assessment and reduction plans;

(5) county and State levels of conservation practice adoption, consistent with the Nutrient Loss Reduction Strategy-approved practices list determined by the Nutrient Loss Reduction Strategy science committee. Guidance should also be provided to districts to meet USDA Natural Resource Conservation Service determined conservation practice standards or Illinois Urban Manual Practice Standards;

(6) information regarding beginning, socially disadvantaged, and veteran farmers and ranchers, as well as disadvantaged communities;

(7) availability of State, federal, and private financial and technical assistance programs to soil and water conservation districts, local governments, and conservation partners to implement the Nutrient Loss Reduction Strategy projects; and

(8) opportunities for evaluating results-based practices utilizing tools, such as the U.S. Department of Agriculture's revised universal soil loss equation, that model environmental outcomes at the field, county, watershed, or State level.

The information collected through the development of the guidelines shall be summarized and provided to the soil and water conservation districts to inform the development of local goals and needs assessments.

Initial guidelines shall be completed and provided to soil and water conservation districts by December 31 of each year and shall include the grant agreement for the Soil and Water Conservation District Grants Program as well as outlining the funding resource support contained within the grant agreement to better inform the development of local goals and needs assessments.

(70 ILCS 405/22.03c new)

Sec. 22.03c. Local goals and needs assessment. Upon the adoption of guidelines described in Section 22.03b, each soil and water conservation district shall develop its own goals and needs assessment to guide implementation of the Nutrient Loss Reduction Strategy through voluntary and incentive-based strategies. The goals and needs assessment shall be technically feasible, economically reasonable, and consistent with the Nutrient Loss Reduction Strategy.

The Department shall provide a template to the districts for the local goals and needs assessment, including the required information listed in this Section as well as information regarding available data and support materials collected as the guidance information listed in Section 25.

Each district is encouraged to collaborate with other local governmental entities and local stakeholders in developing and implementing its goals and needs assessment. Each district shall use the guidelines provided by the Department in developing its goals and needs assessment.

Upon the request of a district, the Department shall assist in the preparation of the district's goals and needs assessment. Districts may also work collaboratively to establish joint plans to leverage existing capacity and resources most effectively.

To carry out its assessment, a district shall identify conservation activities consistent with the Nutrient Loss Reduction Strategy-approved practices for various types of soils and land uses. The assessment shall include planned activities for maximizing the benefit of conservation activities to reduce nutrient losses, promote healthy soil and watersheds, and support the viability of the agricultural sector.

The goals and needs assessment must consider opportunities to access, leverage, and use State and federal resources within a specific soil and water conservation district service area.

Soil and water conservation districts may also convene producer-led dialogues to identify special initiatives or pilot projects to leverage additional resources and implement projects at scale across multiple operations and land ownerships. These efforts should seek to leverage funding and resources from local, State, federal, and private entities.

These efforts may be coordinated with research and pilot projects directed by the Nutrient Research and Education Council.

In developing goals and needs assessment, the soil and water conservation district shall:

(1) evaluate existing assets, such as current practices, current cropping systems, crop processing and market infrastructure, riparian buffers, wetlands, public lands, funding, education, research and peer-to-peer training opportunities, and existing partnerships;

(2) consider the eligible funding categories available through the Partners for Conservation Fund and the district's ability to advance healthy soils practices consistent with Natural Resource Conservation Service soil health principles and the Nutrient Loss Reduction Strategy-approved practices list within a soil and water conservation district service area;

(3) determine vulnerabilities, such as runoff risk, riparian function, stormwater, floodplains and stream impairments, and observed and predicted impacts from climate change, especially to socially disadvantaged farmers, ranchers, and communities;

(4) identify opportunities to conduct outreach to agricultural producers and landowners and to develop individual soil health plans as well as other beneficiaries of nutrient loss reduction efforts;

(5) establish goals for achieving measurable outcomes for nutrient loss reduction, soil and watershed health, and farmer viability through voluntary and incentive-based activities. This includes identifying opportunities to support beginning, socially disadvantaged, and veteran farmers as well as small and mid-scale farmers;

(6) estimate 2-year funding levels needed from State, federal and private sources in order to achieve goals; and

(7) identify opportunities to develop partnerships and leverage resources from local governments, utilities, State and federal agencies, and private entities.

The Department shall identify shared goals and priorities between districts and shall assist in developing partnerships and shared funding approaches to maximize capacity and resources. This may include, but is not limited to, supporting the development of applications to the U.S. Department of Agriculture's Regional Conservation Partnership Program and Conservation Innovation Grant Programs. Initial goals and needs assessments shall be submitted to the Department by December 31, 2024.

(70 ILCS 405/22.03d new)

Sec. 22.03d. Compliance and standards; cost sharing. To be eligible to receive State cost-share support after January 1, 2024, soil and water conservation districts shall have an updated goals and needs assessment.

The Department shall update its rules and procedures for cost-share funding to be inclusive of all relevant Nutrient Loss Reduction Strategy-approved practices promoting the rapid adoption of cost-effective and technically feasible projects. Updates to the rules and procedures for State cost-share programs shall also address barriers to access experienced by beginning, socially disadvantaged, and veteran farmers.

The Department may require results-based practices, consistent with the Nutrient Loss Reduction Strategy-approved practice list, or the assessments of the environmental outcomes of projects, at the field or county level, as a condition of cost-share funding.

(70 ILCS 405/22.03e new)

Sec. 22.03e. Nutrient Loss Reduction Strategy alignment for State-owned, State-managed, and State-leased agricultural lands. State agencies, including, but not limited to, the Department of Natural Resources, Department of Agriculture, Department of Transportation, and each public university, as that term is defined in Section 5 of the Credit for Prior Learning Act, shall evaluate existing soil health practices on agricultural lands that are owned and managed by the State or leased from the State, and update management plans, contracts, or other resources to support the rapid adoption of cost-effective and technically feasible practices identified within the Nutrient Loss Reduction Strategy-approved practice list.

(70 ILCS 405/22.03f new)

Sec. 22.03f. Nutrient Loss Reduction Strategy Reports. Every 2 years, beginning in 2023, the Department, in consultation with the Department of Natural Resources, the University of Illinois Extension Program, and the Illinois Environmental Protection Agency, shall produce a Nutrient Loss Reduction Strategy Report that shall inform the agencies and lawmakers of the current state of nutrient loss within Illinois, progress toward achieving nutrient loss reduction targets as outlined in the Nutrient Loss Reduction Strategy, and make recommendations for accelerating the implementation of practices that would reduce overall nutrient loads into the waters of this State. The report shall include, but is not limited to, the following information:

(1) An executive summary outlining the findings and recommendations of the report.

(2) A scientific assessment of the total nutrient loads for phosphorus and nitrogen and load reduction scenarios for both point sources and nonpoint sources.

(3) An assessment of the impacts and risks from climate change and extreme weather for advancing the goals of the strategy as well as opportunities for adaptive management.

(4) Identification of priority watersheds and potential impacts from nutrient loss to disadvantaged communities, including impacts to drinking water systems and costs to community services.

(5) A list of approved practices for reducing nutrient loss such as natural infrastructure projects such as wetland restoration, riparian buffer zones, and reforestation.

(6) A summary of guidelines for determining local goals and needs for advancing the Nutrient Loss Reduction Strategy priorities.

(7) A summary of local goals and needs provided by the soil and water conservation districts.

(8) A summary of activities by local governments, utilities, and waste management facilities to implement nutrient management practices as it relates to wastewater treatment, stormwater management, and drainage.

(9) Opportunities to improve collaboration among State, federal, and private stakeholders.

(10) Policy and funding recommendations to advance goals and priorities sufficient to achieve the interim goal of reducing, by 2025, loads of nitrate-nitrogen by 15% and total phosphorus by 25% and the long-term goal of reducing loads from Illinois for total phosphorus and total nitrogen each by 45%.

(70 ILCS 405/22.03g new)

Sec. 22.03g. Report delivery. The Department of Agriculture shall submit copies of completed reports under Sections 22.03a and 22.03f to the Governor, the President of the Senate, and the Speaker of the House. In addition, copies shall be submitted to the House Agriculture and Conservation Committee, the House Energy and Environment Committee, the Senate Agriculture Committee, and the Senate Environment and Conservation Committee.

Section 99. Effective date. This Act takes effect upon becoming law.